#1 Calculating EPSTotal income of the company =Total Outstanding shares74957200000 #2 Buns Bakery should revise the numbers to show only the 10% drop in sales like Nicole has been suggesting to Jeff. Jeff is concerned with his bonus for the first quarter but what Jeff is failing to realize is that if they do not get the financing from the VC firm he won’t be getting any bonuses in the near term. Jeff needs to sacrifice immediate gratification for the long term growth of the company. By revising the numbers it would show the VC that the support is there for the additional investment. This is the simplest solution and it is not a drastic change. Nicole has already done the preliminary industry studies to support this revision and the change is warranted. #3 We recommend that Buns Bakery hire a collection specialist to improve the rate that is collected in the first quarter and change the terms to 15 net 30. A quick solution would be to have the summer intern Bob start the process by calling on the accounts that fail to pay
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- Finance, Buns Bakery, Buns